Six Mobile Operators Guilty of Price Fixing

Six Mobile Operators Guilty of Price Fixing

Six mobile communications operators have been found guilty of cartel-like price fixing for text

message service (SMS), causing consumers some Rp 2.8 trillion (US$302.4 million) in losses. The

six operators found guilty by the Business Competition Supervisory Commission (KPPU) are XL,

Telkomsel, Telkom, Bakrie Telecom, Mobile – 8, Smart Telecom. “The six providers were proven to

hold arrangements among them to fix the prices of text messages at between Rp 250 and Rp

350from the year 2004 until April 2008,” Head of KPPU’s panel of judges Dedie S.Matadisastra

said. No prrof, however, was found on other parties under investigation by the competition

watchdog: PT Indosat, Hutchison CP Telecommunications and Natrindo Telepon Seluler (Axis).

The KPPU ordered Telkomsel and XL to pay fines of Rp 25 billion each, while Telkom, Mobile – 8

and Bakrie Telecom to pay Rp 18 billion, Rp 5 billion and Rp 4 billion, respectively. As for Smart

Telecom, Dedie said, “no fine is being imposed on the provider, as it was only involved in the price

fixing agreement September 2007, during its commercial launching.” Smart is the newest entrant

among them, making its bargaining position the weakest.” (JakartaPost-pg1)